As global mobility and investment opportunities continue to attract Indian nationals, Malta has emerged as a popular destination due to its strategic location in Europe, favourable tax regime, and high quality of life.
A Complete Guide to Malta Residency and Malta Citizenship for Indian citizens
Two prominent pathways available for Indians looking to establish a connection with Malta are the Maltese Citizenship by Direct Investment and also the Malta Permanent Residence Programme. Each option offers distinct benefits and challenges. This article explores the key differences, advantages, and considerations Indian nationals should weigh when deciding between the two.
Why Indian HNWIs choose Malta?
Located in the heart of the Mediterranean, Malta is a small island nation known for its strategic location, EU and Schengen membership, and strong financial services sector. The country’s stable political and economic climate, coupled with a high standard of living, make it a compelling option for global investors.
Malta Citizenship for Indian citizens
Acquiring Maltese Citizenship through investment is a direct route to becoming a full citizen of Malta, which is a member of the European Union (EU). Maltese citizenship provides the right to live, work, do business, invest and study in any EU country, along with visa-free or visa-on-arrival access to numerous countries worldwide. The process involves a significant financial commitment, including a non-refundable contribution, property purchase or rental and a charity donation. Once granted, Maltese Citizenship is lifelong and can be passed on to future generations too.
Key Requirements for Malta Citizenship for Indian citizens
- Residency Requirement: Applicants must first obtain a Maltese residence permit and hold it for either 12 or 36 months before qualifying for citizenship.
- Investment in the Economy: A minimum contribution of €750,000 is required for the 12-month route, or €600,000 for the 36-month route.
- Real Estate Investment: Applicants must either purchase real estate worth at least €700,000 or lease a property for a minimum of €16,000 per year. This property is to be kept for five years.
- Donation to a Charity: A donation of €10,000 to a local philanthropic organization is required.
- Due Diligence and Application Fees: Stringent due diligence checks are conducted to ensure the integrity of applicants.
Benefits of Malta Citizenship for Indian nationals
- EU Freedom of Movement: One of the most significant advantages of Maltese citizenship is the freedom to live and work in any EU member state. This can be particularly appealing for Indian nationals seeking broader opportunities within Europe, whether for business, investment, education, or personal reasons.
- Global Mobility: A Maltese passport offers visa-free or visa-on-arrival access to over 190 countries, including the United States and Canada. This global mobility is a key factor for individuals who frequently travel for business or leisure.
- Family Security: A Maltese Citizenship application can include up to four generations in one application and citizenship can be passed on to future generations, providing long-term reassurance and stability for families. This is especially important for those looking to secure a legacy for their descendants.
Permanent Residence in Malta
Permanent residence through the Malta Permanent Residence Programme (MPRP) allows individuals to live in Malta indefinitely but at the same time does not impose an annual minimum stay requirement in Malta. This status provides the ability to travel freely within the Schengen Area. Permanent residence can be obtained through an investment programme that requires a lower financial commitment than citizenship, and it does not necessitate renouncing Indian citizenship. However, unlike citizenship, permanent residency does not automatically confer EU-wide rights..
Key Requirements for Malta Residence for Indian Citizens
- Investment in Real Estate: Applicants must invest a minimum of €300,000 in real estate if purchasing property, or rent a property for at least €10,000 per year in the South of Malta or Gozo (€12,000 per year for other areas).
- Contribution to the Government: A government contribution of €68,000 is required if a property is purchased, or €98,000 if the applicant chooses to rent.
- Donation to a Local NGO: An additional €2,000 donation to a Maltese philanthropic organization is mandatory.
- Proof of Capital: Applicants must demonstrate a minimum capital of €500,000, out of which at least €150,000 should be in financial assets.
The MPRP generally takes 9-12 months from submission to approval. Once approved, the residency permit allows the holder to live and travel freely within Malta and the Schengen Zone. While residency doesn’t require physical presence, maintaining a residential address in Malta is mandatory.
Benefits of Permanent Residence in Malta
- Retaining Indian Citizenship: One of the main advantages of choosing permanent residence over citizenship is the ability to retain Indian citizenship.
- Lower Financial Commitment: The financial requirements for obtaining permanent residence are lower than those for citizenship. This makes it a more accessible option for individuals who wish to establish a presence in Malta without making a large investment.
- Access to the Schengen Area: While permanent residents do not benefit from total mobility within the EU, they do enjoy free travel within the Schengen Area for a maximum period of 90 days in every 6 months.
- Lifestyle Benefits: Permanent resident families who also decide to relocate to Malta, enjoy a safe and stable living environment. The island’s Mediterranean climate, rich history, and vibrant culture also contribute to its appeal as a residence destination.
Differences between Malta citizenship and residency for Indians
- Investment Requirements: Maltese citizenship requires a more substantial financial commitment, including a non-refundable contribution, real estate purchase or rental and a charitable donation. Malta Permanent Residence, while still requiring investments, generally involves a lower overall cost.
- Timeline: The process for obtaining Maltese Citizenship involves a one-year or three-year route depending on the applicant’s choice. On the other hand, an application Permanent Residence in Malta is usually processed in around 9-12 months depending on the case.
- Long-term Goals: Individuals should consider their long-term goals when deciding between citizenship and permanent residence. If the primary aim is to gain full access to the EU and secure citizenship for future generations, Maltese citizenship is the better option. However, if maintaining Indian citizenship and gaining a stable European base is the priority, permanent residence may be more suitable.
Malta Citizenship or Malta Residence: which is the best option for Indian HNWIs?
Malta’s residency and citizenship by investment programmes offer a unique gateway to Europe for Indian HNWIs. The combination of visa-free travel, a robust business environment, and a high standard of living makes it an attractive option for investors and their families. The choice between Maltese Citizenship and Permanent Residence in Malta depends largely on individual circumstances, priorities, and long-term goals. Maltese citizenship offers unparalleled mobility, EU-wide rights, and long-term security, but it comes with the requirement to renounce Indian citizenship and a higher financial commitment. On the other hand, Permanent Residence provides the benefits of living in Malta and access to the Schengen Area, while allowing individuals to retain their Indian nationality.
For Indian nationals weighing these options, it is crucial to carefully consider the legal, financial, and personal implications of each choice. Feel free to get in touch with us for a confidential consultation.
